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USD/JPY Negative Range Theme, Bearish Shift Risk

Published 03/14/2014, 10:38 AM
Updated 12/12/2023, 05:55 AM
USD/JPY
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USD/JPY plots defensive range path to target 101.20

· As we expected, a more defensive tone over the past 24 hours, but we did not expect the extent of the erosion suffered Thursday.

· The small Wednesday top through 102.65 encouraged a setback, and produced a plunge through range supports at 102.25/20 and 101.75.

· Although we see a range defined between 103.70 and 101.20, the threat through mid-March is for a more bearish shift through the lower.

· WHAT CHANGES THIS?

· Downside: Below 101.20 re-energizes bear risks through 100.75/60 for the 200-DMA, 100.28.

· Upside: Above 103.70 signals a bull shift for 104.85/90 maybe 105.35/45 highs.
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